Semiconductor materials manufacturing after $1 billion investment - gases and chemicals

From the 2024 DOR Tax Exemption Study

82.08.970; 82.12.970 - Semiconductor materials manufacturing after $1 billion investment - gases and chemicals Description Manufacturers and processors for hire of semiconductor materials are exempt from sales and use taxes on purchases of gasses and chemicals used in the manufacturing process. The exemption is contingent upon commencement of commercial operations by a new semiconductor microchip fabrication facility with an investment in new buildings and equipment amounting to at least $1 billion. The exemption expires 12 years after the effective date, or January 1, 2024, if the contingency has not occurred. Purpose To encourage the retention of existing semiconductor businesses in Washington and attracts similar businesses to Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenue because currently no exemption taxpayers use it. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - No taxp